Georgi Dinkov: Okay. Great. And what was the size of the space that was given back to you?
Ted Klinck: This is Ted. Really we had a couple as Brendan alluded to. One of the government customer, they were — again, just to reiterate they’re in the soft term so they had the ability to terminate their lease on a reasonably short notice. I think it was a 90-day notice but it’s a 116,000 square feet in Atlanta and then they gave that back I think they gave mid-January. So that’s another big one for the majority of the year. And then, I’ll just mention one other one. Those are the only two above Tivity and the government tenant above 100,000 feet. We had about 120,000 square foot customer that we went through a merger here in Raleigh. And they downsized to 46,000 feet. So they gave us back early as part of the renewal long-term renewal they gave us back about 77,000 square feet effective January one of 2023.
So that’s a hit on the occupancy as well. Now, the good part of that story is we’ve already released 55,000 of the 75,000 square feet and with customers that will be starting throughout this year. So really those are the three big ones.
Georgi Dinkov: Great. That was very helpful. And just my last question, Can you talk about the sublet market. How is that trending in your markets and specifically in your portfolio?
Brian Leary: And George, Brian Leary here to take that question. So we’ve talked about this before and we are very much focused on the sublet activity the growth of it, the complexion of it. It looks different in certain cases not all of it is the same. And so where we see it growing, Raleigh is probably a market with the greatest amount of sublet space as a proportion of available space that’s kind of the headline. As you dig into that you realize that almost 60% of all the sublease space in a market like Raleigh is in one single area called the Research Triangle Park, which we don’t have any exposure to and have none in our market. And then — so what — the big thing is who’s leasing, who’s the sub-lessor and what are their motivations to write a check to move someone in there or how much term do they have left?
And so if you look within our portfolio from a sublet standpoint, the average wealth of our sub-lessor is north of six years if you even take out one user who’s got 14-plus years, it’s over four years. So we feel pretty good about the visibility and exposure that’s within the high risk portfolio. And then if you look at the general markets, Nashville is actually going down and we are part of that with folks backfilling. But it’s out there. When it gets — the ratio of available sublet space gets over 25% we have seen that that starts to impact rents. And Raleigh’s the place where that shows up. But other than that, most of the sublet amount has stayed stable quarter-to-quarter. It’s definitely up year-over-year I mean nationally and within our markets.
But quarter-to-quarter we haven’t seen a lot move.
Georgi Dinkov: Great. Appreciate the color. Thank you so much for the time.
Operator: Next question is from the line of Rob Stevenson with Janney. Please go ahead.
Rob Stevenson: Good morning guys. Brian you guys had north of $135 million of combined building improvements and second-gen expenses in 2022 and just shy of $120 million in 2021, what are you expecting in 2023 at this point given Tivity retenanting and other known spending?
